Petrol prices in Nigeria may rise to as high as ₦1,400 per litre in the coming days as the Dangote Petroleum Refinery reportedly considers adjusting its fuel prices amid ongoing supply challenges and rising crude oil costs.
Industry sources say the potential price adjustment is being considered due to changes in global crude oil prices, foreign exchange pressures, and supply-related issues affecting the cost of refining and distributing petrol in the country.
The Dangote Refinery, located in Lagos, is currently the largest single-train refinery in Africa, with a capacity of 650,000 barrels per day. Since it began supplying petroleum products to the Nigerian market, the refinery has played a key role in reducing the country’s reliance on imported fuel.
However, experts say the refinery, like other producers, is still influenced by international crude oil prices and market dynamics, which can affect the final cost of refined products such as petrol.
Reports indicate that the proposed repricing could push the pump price of petrol to around ₦1,400 per litre in some parts of the country if the adjustment is implemented. Such an increase would represent another significant rise in fuel costs for Nigerians, many of whom are already struggling with high living expenses.
Nigeria has experienced several fuel price adjustments since the federal government removed the fuel subsidy in 2023, a policy decision that allowed petrol prices to be determined more by market forces rather than government regulation.
While the subsidy removal was introduced as part of economic reforms aimed at reducing government spending and improving transparency in the petroleum sector, it has also led to sharp increases in fuel prices, which in turn affect transportation costs, food prices, and other basic services.
Energy analysts note that fluctuations in petrol prices are now more likely because the market is increasingly influenced by global oil prices, exchange rate movements, and domestic supply conditions.
Another factor affecting the situation is the availability of crude oil supply to local refineries. Industry observers have pointed out that ensuring consistent crude supply to the Dangote Refinery and other domestic refineries remains important for stabilizing fuel production and pricing in Nigeria.
The federal government has repeatedly stated that local refining capacity, including the Dangote Refinery and rehabilitated government-owned refineries, will help reduce Nigeria’s dependence on imported petroleum products in the long term.
Despite this optimism, many Nigerians remain concerned about the short-term impact of fuel price increases, as petrol plays a major role in powering transportation, small businesses, and electricity generators across the country.
If the proposed repricing is implemented, it could trigger another round of adjustments in transport fares and the prices of goods and services, further affecting household budgets….See More
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